Quiz 5

Why do we need a commercial and legal eligibility check? (Number of correct answers: 3)

The commercial and legal eligibility check is used by the unit that draws up the contract as a form of safeguard that the recipient can use and process the funds made available in a proper and appropriate manner.
The commercial and legal eligibility check is used by the officer responsible for the commission as a form of safeguard that the recipient can use and process the funds made available in a proper and appropriate manner.
For submission to tax audits in order to be able to document that GIZ complies with national public-benefit legislation.
The commercial and legal eligibility check is used for purely bureaucratic purposes; the decision as to whether or not the commercial and legal eligibility check needs to be submitted is taken by the respective contract manager.
The commercial and legal eligibility check is used by the unit that draws up the contract as a basis for the plausibility check and is a mandatory criterion for entering into contracts.
The auditor commissioned by GIZ reviews the result of the commercial and legal eligibility check as part of the audit.
To verify commercial, administrative and legal capacity to ensure that the recipient is able to implement the measures on its own responsibility.

Take the following case: the result of the commercial and legal eligibility check reveals shortcomings in the recipient’s commercial, legal and administrative capacity. What specific options are now available? Please mark the correct options with a cross: (Number of correct answers: 4)

Risk-reduction measures can be contractually agreed if a contract can justifiably be signed after an appropriate and careful risk assessment has been carried out.
A potential recipient can be barred from signing a contract if the result of the check is negative.
As long as a recipient is not listed on the UN and European Union sanctions lists, it will be entitled to sign a contract.
The recipient is not yet legally and/or commercially qualified to implement a financing arrangement. However, a local subsidy can be concluded, provided that it is a local recipient.
The officer responsible for the commission or, as appropriate, the officer responsible for the cost centre can get advice from a national/international auditor and decide for themselves whether or not to sign the contract with the recipient.
Risk-reduction measures can include fewer copies of vouchers, more frequent audits and shorter payment terms.

Who carries out the commercial and legal eligibility check?

The potential recipient
Commercial staff involved in the project
Procurement and Contracting Division
The officer responsible for the commission or, as appropriate, the officer responsible for the cost centre
A national or international auditor
All of the above

Who bears responsibility for the commercial and legal eligibility check and is required to sign the document?

The potential recipient
Commercial staff involved in the project
The unit that draws up the contract (Procurement and Contracting Division or country office)
The officer responsible for the commission or, as appropriate, the officer responsible for the cost centre and all other persons involved in the eligibility checking process
A national or international auditor

Financing agreements

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